Tri-Cities Voice Newspaper - What's Happening - Fremont, Union City, Newark California

April 18, 2006 > Chip maker Advanced Micro stock falls on disappointing outlook

Chip maker Advanced Micro stock falls on disappointing outlook

by AP Wire Service

CHARLOTTE, North Carolina (AP), Apr 13 _ Advanced Micro Devices Inc. stock fell Thursday after the company's outlook fell below Wall Street expectations.

Shares of the chip maker fell $3.62, or 10 percent, to close at $31.80 on the New York Stock Exchange.

AMD's outlook weighed on shares Thursday, even though its first-quarter earnings per share handily beat expectations.

Although the Sunnyvale, California-based company will have an extra week of business in its second quarter, the company is forecasting revenue to be flat to down slightly from the first quarter.

While AMD did well in the first quarter, analysts said, its outlook is evidence that rival Intel Corp. is trying hard to regain lost market share.

Analysts have been predicting a price war will ensue this year.

ThinkEquity analyst Eric Ross, who rates AMD a ``sell,'' said in a research report that AMD should have forecast revenue to be up in its second quarter given the extra week of business. He said AMD will be affected by price cuts initiated by Intel.

Analysts had expected AMD to weigh in with second-quarter revenue of $1.35 billion (euro1.12 billion), which is higher than the $1.33 billion (euro1.1 billion) it posted in the first quarter.

The company said it earned $185 million (euro153 million), or 38 cents a share, on revenue of $1.33 billion (euro1.1 billion) in the first quarter.

In the same period a year earlier, it lost $17.4 million (euro14.4 million), or 4 cents a share, on revenue of $1.23 billion (euro1.02 billion). Analysts were expecting earnings of 30 cents a share, according to Thomson Financial.

About Us   Current Issues   Press Dates   Archived Issues   Ad Rates   Classifieds  
Shopping & Dining Guide   Local Events   Your Comments   Subscribe  

Tri Cities Voice What's Happening - click to return to home page

Copyright© 2005 Tri-City Voice
Advertise in What's Happening - A Guide to the Tri-City Area Return to Tri-City Voice Home Page E-mail the Tri-City Voice About the Tri-City Voice Read a current issue of the Tri-City Voice online Archived Issues of the Tri-City Voice Tri-City Voice Advertising rates Dining and Shopping in the Tri-City Area Events in the Tri-City area Tell us what you think Return to the Tri-City Voice Home Page Subscribe to the Tri-City Voice Press dates/Deadlines